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  • Are gambling winnings taxable?

    Yes, but only to the extent they exceed gambling losses. For example, if a taxpayer had $100 of gambling winnings and $80 of gambling losses, then the taxpayer would include $20 of gambling winnings in gross income.

  • Are education expenses paid by my employer taxable?

    Yes, but not 100% of education expenses paid by your employer are considered taxable income for you. IRS guidelines say that up to $5,250 is nontaxable, while anything in excess of $5,250 is taxable. For example, if Lulu’s employer paid $12,000 for her to get an MBA, $5,250 would be nontaxable, but the remaining $6,75 would be considered taxable income for Lulu.

  • Are life insurance premiums paid by the employer considered taxable income?

    If your employer pays life insurance premiums on your behalf, and you are the primary beneficiary, then any amount greater than $50,000 is taxable. For example, if your employer paid $65,000 of life insurance premiums, you as the taxpayer would record $15,000 of taxable income (taxable fringe benefit).